PCI DSS Compliance Blog

Durbin Amendment Updates – How has the Industry Responded?

The Federal Reserve made final rulings on the controversial Durbin Amendment back in June of 2011 that capped processing fees on debit and credit card transactions. The impacts of the amendment are now being seen and felt throughout the banks, merchants and even down to the consumers.

The Durbin Amendment fought to protect merchants and consumers; however, the amendment is actually protecting the banks, resulting in increased costs for merchants and consumers. 

The intention of the reform was to regulate processing fees paid by merchants, but for some merchants, they have actually seen increases in their debit card transaction fees. Most notably was Redbox, a DVD rental vendor that only completes transactions through debit and credit, who had to increase their rentals 20%, from $1.00 to $1.20, in order to compensate for the added fees. Chief Executive Paul Davis was quoted saying that their price increase stems from operational costs, mainly debit-card interchange fees.

Concurrently, the banks now claim a decrease of collected money through processing fees, which has resulted in these banks ending debit card rewards programs and including fees on checking accounts, which ultimately costs the consumer more to partner with their bank.

The domino effect of the Durbin Amendment continues to roll along and unfortunately, the amendment continues to stir up questions and concern as consumers and banks go head-to-head. In November of 2011 consumers fought banks against the proposed monthly debit card fees and ultimately won; banks decided to not instate monthly fees for the use of debit cards.  

Consumers, merchants and banks will continue to encounter the waves from the Durbin Amendment tsunami, working toward a reasonable solution. Only time will tell.

 

Future implications of the Durbin Amendment

April 1st, 2012 – Two-network minimum requirement for issuers goes into effect.

April 1st, 2013 – Two-network minimum requirement for prepaid debit and benefit cards goes into effect.

The requirement for issuers to partner with two networks creates a two-tier pricing system that some networks may have difficulty navigating. A network can no longer only partner with Visa, who has agreed to honor the cap exemptions. They must choose a second vendor, and there is no guarantee of protection.

The Durbin Amendment has created questions and concerns throughout the industry, with business owners wondering the impact the Amendment has on their business. Payment processing technology is key to businesses keeping up with the ever-changing industry. Let the experts at Element Payment Services make sure you are ahead of the curve, and help you better understand the Durbin Amendment and its potential impact, by contacting us today.

 

Infographic Provided By: http://www.nerdwallet.com/infographics/durbin-timeline

Part 3 - 12 Holiday PCI Compliance Tips, Questions and Advice and Security Best Practices to Get You Ready for the New Year

PCI compliance tips nine through twelve

9. What are some signs of suspicious behavior that may indicate fraud during card present transactions?

• The customer appears nervous or overly talkative
• The customer questions the sales clerk about the floor limit, and then makes several separate purchases that approach, but do not exceed the floor limit
• The card is produced from a pocket, not a wallet
• The customer signs the sales draft in a deliberate or unnatural manner

10. Educate your Employees on PCI Compliance

There is a wealth of educational materials and seminars that are dedicated to PCI compliance available. However for some, the ability to successfully digest and understand all of that information, not to mention your company’s own general security processes, can be difficult to achieve. Therefore, educating your employees can be an important step to improving the payment processing security of your company and your customers. Continued education helps ensure that all employees are up to date on the latest changes in security standards and the necessary steps.

11. Secure your Paper Trail to Avoid Theft

Believe it or not, dumpster diving for discarded receipts or documents that contain credit card information is something that still happens. There are several steps that can be taken to help your business or customers from being victimized from this practice. It is always a best practice to ensure that none of the receipts have a complete credit card number on them. This helps ensure that if a receipt is lost, thrown away or stolen, that the card number on the account is not at risk.

12. What’s the big hurry for becoming PCI compliant?

It is important for companies to achieve PCI compliance on a number of levels. For starters, becoming PCI compliant will help protect your customers’ valuable card data from theft. Ensuring your customers’ safety can help build trust and the confidence of your customers, and also help them avoid the hassle they could face by having their card data compromised.

But, the risks don't end there. Companies that don’t meet the PCI Compliance requirements could also face compromise fines and fraud costs. Ultimately, merchants should view PCI DSS compliance as an insurance policy, protecting them from the financial costs of failing to secure card data. This can be an advantage for companies; working towards compliance will help them improve their processes and operate more securely.

It is also important to note that starting January 1, 2012, that PCI DSS Version 2.0 will be enforced. While the changes to the standard weren’t major, they are hoped to have substantial impact on the card data industry.

Element is Named the Best Channel Vendor by Business Solutions Magazine for the Third Year in a Row

2010, 2011 and now 2012. For the third year in a row of Element Payment Services has been selected by Business Solutions magazine as one of the Best Channel Vendors. Value Added Resellers (VARs) and Independent Software Providers (ISVs) who participated in the Business Solutions' annual survey ranked Element as a top payment processor for its innovative and reliable technologies, and service and support.

Being honored for this award actually marks the fifth award in a row for Element Payment Services from Business Solutions magazine. In addition to the Best Channel Vendors, Element has also received the Best Channel Product 2010 and 2011 awards.

Receiving the Best Channel Vendor award is a direct product of Element and the dedicated team, working to achieve their mission to reduce the burden of PA-DSS and PCI DSS compliance requirements for their software providers and customers, while providing the best possible service. Element works to develop and provide technologies that enable its partners to stay ahead of the payment industry’s security requirements and offer best-in-class solutions to their customers.

Business Solutions magazine partnered with Penn State University to conduct the survey and analyze the results. The web-based survey of nearly 4,300 of the most active VAR subscribers drew nearly 11,000 votes, continuing the tradition of this being one of the largest surveys of it s kind, across categories that included service/support, features, innovation and reliability. Once the votes were analyzed and compiled, the top vendors were awarded as the 2012 Best Channel Vendors. Of all vendors that are included, only the top five percent of selected vendors were honored with this award, making this an exclusive list of winners, of which Element is included.

Element Payment Services is recognized for its 2012 Best Channel Vendor award in the January 2012 issue of Business Solutions Magazine, as well as on the BSMinfo.com Best Channel Vendors Feature page, year-round.

For more information on Element and their award winning payment processing solutions, contact us today.